Capital One Financial Stock Earnings Reports

Capital One reported Q1 2026 GAAP EPS of $3.34 ($2.2 billion) and adjusted EPS of $4.42 after integration and purchase-accounting items. Revenue fell 2% sequentially while noninterest expense declined 9%; pre-provision earnings rose ~8% sequentially (6% on an adjusted basis). Provision for credit losses was ~$4.1 billion (largely $3.8 billion net charge-offs) with a $230 million allowance build; total allowance reached $23.6 billion and portfolio coverage rose to 5.28%. Key segment trends: Domestic Card showed continued purchase-volume and loan growth (materially driven by the Discover acquisition) with improving credit metrics; Consumer Banking grew deposits and auto lending (auto originations +21% YoY); Commercial banking credit metrics remained healthy though with modestly higher criticized loans. Liquidity remains ample (~$165 billion total liquidity, ~$76 billion cash; preliminary LCR 166%). Net interest margin was 7.87%, down 39 bps QoQ primarily due to 2 fewer days in the quarter, seasonal card paydowns, and elevated cash from deposit growth and the Discover home loans sale. Common equity Tier 1 (CET1) ended the quarter at 14.4% (up 10 bps QoQ) after $2.5 billion of buybacks. Capital One closed the Brex acquisition (~$4.5 billion consideration) after quarter-end (Andrew noted Brex will reduce CET1 by a little over 40 bps in Q2). Discover integration is progressing (debit conversion complete; originating Discover cards on Capital One tech ramping through Q3; full back-book card conversion into early 2027) and management remains on track to deliver the announced $2.5 billion of synergies by mid-2027. Management emphasized continued investment in technology, data and AI, growth marketing (marketing weighted toward later quarters), and building the heavy-spender franchise and payments network — investments that will press the efficiency ratio near-term but are intended to drive long-term earnings power.